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U.S. Home Remodeling Market Size
U.S. Home Remodeling Market size exceeded USD 340 billion in 2020 and is expected to grow at over 4.1% CAGR between 2021 and 2027. Increase in spending on home improvement activities by rental property owners owing to surge in rental demand will foster the industry growth.
Shifting consumer trend toward advanced home technologies as well as security features followed by several convenient components including weather control appliances, smart lighting, etc., which is likely to cater to the market expansion.
The U.S. housing industry is experiencing a considerable growth in recent years due to low-interest rates coupled with increased spending time at home. The surging demand for better and convenient amenities among interior designers, homeowners, and builders will propel the home improvement materials demand across the U.S. Tech-savvy millennials are becoming familiar and more inclined toward the short-term plans when it comes to housing investments. Increasing number of private rented houses in the U.S. has significantly supported several innovations and new & improved techniques for home improvement activities. Approximately 65% of people below 35 age group are living in rented houses in the country, sustaining the market growth.
Installation of advanced systems and control techniques for improving air-exchange rate will considerably propel the industry statistics. Old age people are mostly staying at homes, and indoor air quality has significantly impacted their health and comfort. The situation can be addressed effectively by improving building design and operations as well as air filtration techniques. Furthermore, to control the flow of heat and moisture, the demand for sustainable and green building materials is likely to grow in the coming years. Homeowners from major states including California, Texas, and Florida are significantly investing in home improvement projects to increase the property value.
Increasing inflation rate and lack of trained labors may constrain home remodeling market demand. Moreover, the COVID-19 pandemic has adversely affected the building and construction industry members including owners, developers, realtors, and supply chain vendors impelled by project cancellation, shortages of labor, and frequent supply chain disruptions. Economic downturn across the U.S. further declined the industry. However, a speedy recovery has been observed since the last quarter of 2020 led by surging usage for interior decoration, additions, and alteration projects.
Report Attribute | Details |
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Base Year: | 2020 |
U.S. Home Remodeling Market Size in 2020: | 345.95 Billion (USD) |
Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 4.1% |
2027 Value Projection: | 456.19 Billion (USD) |
Historical Data for: | 2017 to 2020 |
No. of Pages: | 650 |
Tables, Charts & Figures: | 246 |
Segments covered: | Project, Distribution, Wholesale, Application |
Growth Drivers: |
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Pitfalls & Challenges: |
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Do it yourself (DIY) projects are forecast to register a growth rate of over 4.3% through 2027. Millennials are getting interested in do-it-yourself projects and shifting their preference toward eco-friendly and energy-efficient projects with advanced features. These DIY projects are cost-effective to end consumers as there is no inclusion of third-party members. Homeowners and rental property owners can consult with top architects to invest in prominent energy-efficient upgrades and also visualize & implement their vibrant and out of the box ideas for executing the projects.
Wholesalers play a pivotal role in the distributing channel by collaborating with manufacturers, retailers, and consumers. The wholesale to retailer segment registered the highest revenue of around USD 140 billion in 2020 and is poised to see a constant pace up to 2027. Wholesalers can improve the demand supply stability by providing customer’s feedback directly to the manufacturers.
Rapidly growing ecommerce business enables wholesalers or manufacturers to offer numerous options for home improvement products or materials to the customers at an affordable cost. Additionally, real-time tracking and comparable pricing options can influence consumers toward digital platform, eventually boosting the home remodeling market size in the U.S.
Residential showroom segment is set to cross USD 80 billion by 2027. Residential showrooms enable consumers to observe and inspect the product before making purchase. They give sense of personal touch and make consumers more confident about the purchase. However, residential showrooms carry greater inventory options and provide a wide range of products to customers.
The kitchen improvement & additions segment is anticipated to witness highest gain of above 5% through 2027. Increasing adoption of smart kitchens in high income states owing to its energy-efficient and water-efficient applications such as motion sensing water faucets and lights, auto dispensing washing liquid, and Bluetooth or Wi-Fi-enabled appliances is spurring the segment demand. An upsurge in the popularity of attractive colors and designs among cabinet structures coupled with maximum storage capacity and fire-proof cooking countertops will stimulate the U.S. home remodeling market share.
The regional industry is dominated by several international and domestic players. Market leaders are continuously engaging themselves in R&D activities along with several other strategic investments for delivering innovative and effective products and materials to their customers. The key companies in the industry are :
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Market, By Project
Market, By Distribution channel
Market, By Wholesale
Market, By application
Market, By Region